Market-Based Assets and Shareholder Value: A Framework for Analysis

Srivastava, Rajendra K.; Shervani, Tasadduq A.; Fahey, Liam

doi:10.1177/002224299806200102

Cited by 928 publications

(587 citation statements)

References 55 publications

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“…Thus, there is no strong evidence that only larger firms launch LPs. In essence, any firm, small or large, which uses an LP to build up relationshipbased market assets (Srivastava et al 1998) can create a sustainable competitive advantage and survive in the market. Nevertheless, smaller firms, particularly late entrants introducing 'me too' LPs without a true value proposition, face a higher risk of LP failure.…”

Section: A Final Reflection On Lpsmentioning

confidence: 99%

Loyalty Programmes: Current Knowledge and Research Directions^*

Dorotić

Bijmolt

Verhoef

2011

Int J Management Reviews

183

182

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Loyalty programmes (LPs) have increased in number and popularity, but their effects on customer behaviour remain equivocal, due to a lack of understanding of the drivers of LP effectiveness and insufficient generalizable conclusions across prior studies. This paper synthesizes current knowledge pertaining to LPs, reconciles opposing findings by exploring the conditions that mediate and moderate the effects of LP participation on consumer responses, and charts important avenues for research. Overall, we find that LPs are effective in increasing consumer purchase behaviours over time, but the impact differs across consumer segments and markets. Currently, neither firms nor consumers fully benefit from the opportunities that LPs offer. To that end, we identify aspects which help researchers and practitioners increase their understanding of LP benefits and pitfalls. Through this study, companies that already have LPs will be able to improve their performance, and those that are about to introduce one will better understand the implications of the LP launch.

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Section: A Final Reflection On Lpsmentioning

confidence: 99%

Loyalty Programmes: Current Knowledge and Research Directions^*

Dorotić

Bijmolt

Verhoef

2011

Int J Management Reviews

183

182

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“…This external launch activity should therefore impact financial launch success. More generally, market-based capabilities contribute to firms' financial performance (Srivastava, Shervani, and Fahey, 1998). In summary, the intensity of externally directed marketing launch activities to facilitate the adoption of the new products will positively impact new product success:…”

Section: Launch Activities Impacting Market Launch Successmentioning

confidence: 99%

Externally Directed and Internally Directed Market Launch Management: The Role of Organizational Factors in Influencing New Product Success

Kuester¹,

Homburg²,

Heß³

2012

J of Product Innov Manag

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Introducing new products remains a critical challenge for managers. Consumer acceptance of new products is key to new product success and requires the effective implementation of market launch activities. The present study describes the relationship between different types of market launch activities and market‐related, time‐related, and financial market launch success. The study's framework extends previous work on launch management by complementing the view that launch activities are predominantly outwardly directed with the notion that launch management can also be inwardly directed. More specifically, launch activities can both target customers as the external audience, for example, via communication and pricing, and address an internal audience, such as management and sales personnel, for example, using departmental coordination or employee incentives. The study also sets out to investigate how situational factors impact the relative effectiveness of both externally directed and internally directed launch activities in engendering successful new product launches. In particular, product newness, technology drivers, and firm size are considered as relevant variables. Structural equation analysis of data on 178 new products across industries provide empirical evidence that market launch success depends on the intensity of both externally directed and internally directed market launch activities. With regard to the overall impact of internally directed activities, the findings confirm that organizational factors and antecedents indeed play a critical role in new product launch and its respective performance with internally directed activities having an even stronger impact on time‐related and financial success than outwardly directed instruments. Specifically, these internal activities are often viewed as idiosyncratic resources that are hard for competitors to observe and are therefore more difficult—if not impossible—to replicate compared to externally directed activities in market launch. The paper clearly pinpoints that the successful launch of new products is a complex task that also necessitates the implementation of internally directed launch activities. Fast market penetration requires coordination among the different internal players as well as support from top management. Furthermore, the financial objectives of the market launch can only be met if employees and executives both receive the necessary incentives and support to effectively execute the new product introduction. The study also demonstrates that moderators impact the strength of the effectiveness of these two different types of market launch activities. This research provides important implications for launch management by advocating that the two foci on external and internal constituencies should not be pursued in isolation but that instead, the opposite is true.

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“…Furthermore, we specify the following hierarchical regression model to test hypotheses (H4) for the effect of real options exercise decisions on firm performance. Hierarchical regression Firm-specific factors affecting performance tend to persist across time periods Bharadwaj et al, 1999 Growth potential Growth prospects vary across firms due to industry positioning Porter, 1980 Firm size Size influences firm resources and capabilities Bharadwaj et al, 1999 Capital expenditure Captures capital endowments Kothari et al, 2002; Leverage Debt overhang reduces investment incentive, which ultimately affects firm performance Lang et al, 1996;Ahn et al, 2006 Advertising expenditure A firm's advertising creates intangible market-based assets, which strengthens performance Srivastava et al, 1998;Rao et al, 2004 B2B dummy The risks associated with B2B investments tend to differ from those of B2C investments Subramani & Walden, 2001;Dewan & Ren, 2007 Y2K dummy The dot-com bubble burst in 2000, affecting firm valuations Inferred from observing data allows for step-wise introduction of a set of variables into the model (Cohen et al, 2003), enabling us to isolate the effect of control variables and those attributable to real options exercise decisions.…”

Section: Statistical Analysesmentioning

confidence: 99%

Resolving uncertainty and creating value from the exercise of e‐commerce investment options

Otim

Grover

2011

Information Systems Journal

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This study examines the effect of the resolution of uncertainty on real options exercise decisions with respect to three e‐commerce investment options: scale‐up, stage and joint investment, and the relationship between exercise of these options and firm performance. The results of a study of 172 public e‐commerce investment announcements show that resolution of external (exogenous) and internal (endogenous) uncertainty has a significant effect on option exercise decisions. However, the results also imply that simply waiting without investment in active learning does not create significant value from real options. The key differentiator is how a firm resolves endogenous uncertainty as this endows it with the ability to successfully undertake the information technology investment and exploit the economic opportunity implied by the resolution of exogenous uncertainty. Furthermore, our results imply that different options should be used to manage situations involving certainty of loss on one hand and severity of loss on the other hand. Thus, it is important for firms to make the right choices when using options‐based investing to manage risk. We suggest that, perhaps, managers need to maintain a portfolio of options to manage the two dimensions of risk simultaneously.

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Market-Based Assets and Shareholder Value: A Framework for Analysis

Cited by 928 publications

References 55 publications

Loyalty Programmes: Current Knowledge and Research Directions^*

Loyalty Programmes: Current Knowledge and Research Directions^*

Externally Directed and Internally Directed Market Launch Management: The Role of Organizational Factors in Influencing New Product Success

Resolving uncertainty and creating value from the exercise of e‐commerce investment options

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Market-Based Assets and Shareholder Value: A Framework for Analysis

Cited by 928 publications

References 55 publications

Loyalty Programmes: Current Knowledge and Research Directions*

Loyalty Programmes: Current Knowledge and Research Directions*

Externally Directed and Internally Directed Market Launch Management: The Role of Organizational Factors in Influencing New Product Success

Resolving uncertainty and creating value from the exercise of e‐commerce investment options

Contact Info

Product

Resources

About

Loyalty Programmes: Current Knowledge and Research Directions^*

Loyalty Programmes: Current Knowledge and Research Directions^*